Rising fuel prices may hit textile industry

Proposed 6.56% hike in the cost of gas, 23% in electricity tariff and Rs. 2 in petroleum would cumulatively push the cost of inputs rendering already teetering Pakistani textiles uncompetitive in international market, said Mian Zahid Aslam Chairman Pakistan Textile Exporters Association (PTEA). He said a lethal combination of external trade and tariff barriers and high cost of doing business, chronic energy deficiency, protective duties, burdensome taxes and levies and frequent carriage and freight hikes are spelling disaster for textile sector and exports.

The PTEA Chairman further apprehended that closing down of hundreds of textile units would not only negatively affect the productivity and exports but also negative social repercussions in shape of workers unemployment and joblessness. The worsening Law and Order situation in the country due to which the foreign buyers were not visiting Pakistan and were placing their orders in India, Bangladesh and Sri Lanka is another factor adding to the crisis in the industry. He urged the concerned quarters to take immediate cognizance of the matter and undertake corrective measures to retrieve the situation before the situation goes out of control.